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/raid1/www/Hosts/bankrupt/TCRLA_Public/131017.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, October 17, 2013, Vol. 14, No. 206 Headlines B R A Z I L DESENVIX ENERGIAS: Moody's Cuts Corp. Family Rating to 'B1' MMX MINERACAO: In Deal to Sell Port Stake to Trafigura, Mubadala OGX PETROLEO: Speculations Emerge of Owner to Cede Control of Firm OGX PETROLEO: Seeks to Preserve Fields Amid Restructuring C A Y M A N I S L A N D S ARAB ISLAMIC: Commences Liquidation Proceedings BLUE RIDGE: Placed Under Voluntary Wind-Up BTR ARBITRAGE: Creditors' Proofs of Debt Due Oct. 29 BTR GLOBAL: Creditors' Proofs of Debt Due Oct. 29 BTR OPPORTUNITY: Creditors' Proofs of Debt Due Oct. 29 EXPEDITION MASTER: Creditors' Proofs of Debt Due Nov. 7 FLATIRON STRATEGIC: Creditors' Proofs of Debt Due Nov. 7 GLOBAL MANAGEMENT: Creditors' Proofs of Debt Due Nov. 6 IBIS RE: Creditors' Proofs of Debt Due Oct. 28 INDOCEMENT (CI): Creditors' Proofs of Debt Due Oct. 28 PRIQUAM ADVISORY: Creditors' Proofs of Debt Due Oct. 21 SC INDIA: Creditors' Proofs of Debt Due Oct. 29 SG S&P: Commences Liquidation Proceedings P U E R T O R I C O EL VOCERO: Attorneys Seek to Sell Business, Defends Sale Maneuver S T. L U C I A * ST. LUCIA: Chamber of Commerce Unsurprised by Unemployment Rate T R I N I D A D & T O B A G O CARLTON SAVANNAH: First Citizens Places Hotel in Receivership V E N E Z U E L A PETROLEOS DE VENEZUELA: S&P Affirms 'B' Corporate Credit Rating X X X X X X X X X * Latam Bank Credit Quality Manageable Despite Economic Challenges * Upcoming Meetings, Conferences and Seminars - - - - - =========== B R A Z I L =========== DESENVIX ENERGIAS: Moody's Cuts Corp. Family Rating to 'B1' ----------------------------------------------------------- Moody's America Latina Ltda (Moody's) downgraded Desenvix Energias Renovaveis S.A. (Desenvix)'s corporate family rating to B1 from Ba3 on the global scale and to Baa1.br from A2.br on the Brazilian national scale. At the same time, Moody's downgraded Desenvix's 4-year amortizing BRL 100 million debentures expiring on December 12, 2016 to B2 from B1 on the global scale and to Baa3.br from Baa1.br on the Brazilian national scale. The outlook is negative for all ratings This rating action concludes the rating action initiated on June 28, 2013 when Moody's placed Desenvix's ratings under review for possible downgrade. RATINGS RATIONALE The downgrade of Desenvix's corporate family ratings reflects the company's current inadequate liquidity position along with weaker credit metrics than Moody's had previously anticipated, and which Moody's does not expect to change materially over the next couple of years. Moody's projects that Desenvix's consolidated credit metrics will now for the most part be more commensurate with the low end of the B rating category during this period in accordance with Moody's rating methodology "Unregulated Utilities and Power Companies". The negative outlook reflects uncertainties over the risks associated with cash from operations that is expected to be lower than previously projected vis-…-vis a potential increase in unexpected short-term cash outlays. Immediate short-term cash needs could stem from the settlement of an existing liability with one of its suppliers and potential penalties imposed by the regulator at the level of one of its subsidiaries, Enercasa Energetica S.A. (Enercasa). Pressure could build to stabilize the outlook should Desenvix improve its liquidity position by lengthening its debt profile and achieve an increase in its operating margin through greater asset utilization while managing its capital expenditures and the payment of dividends prudently so that its credit metrics do not deteriorate further. Moody's will consider a downgrade rating action if Desenvix does not improve its liquidity position either by securing timely and adequate long-term funding or eventually obtaining new financial resources, either from divesting some existing operations or concluding some kind of additional equity arrangement. The potential imposition of penalties by the regulator at the level of Enercasa could also trigger a rating downgrade, depending on the magnitude of the penalty. Such an action would be likely should Moody's projections indicate that Desenvix's consolidated CFO Pre-WC over debt ratio will remain below 5% and at the same time the interest coverage ratio will stay lower than 1.5x for a prolonged period. Desenvix is a holding company controlled through a shareholding agreement among Jackson Empreendimentos Ltda (not rated), through the equity fund FIP Cevix, with 40.65% of Desenvix's voting and total capital; SN Power, which holds 40.65% of the company's voting and total capital; and the pension fund FUNCEF, which holds the remaining 18.7% of the company's voting and total capital. SN Power is a holding company controlled by two Norwegian companies, Statkraft (60%; Baa1, stable) and Norfund (40%). Desenvix holds interests in 15 power plants with a total installed capacity of 349 MW, consisting of 10 small and medium sized hydro- power plants, one biomass plant and four wind power plants. In addition, Desenvix holds 25.5% of two transmission projects for the construction of 511 kilometers of transmission lines. Desenvix is also engaged in the development of two hydro-power projects with total installed capacity of 45 MW and a 30 MW wind power plant. MMX MINERACAO: In Deal to Sell Port Stake to Trafigura, Mubadala ---------------------------------------------------------------- Matthew Cowley at the Wall Street Journal reports that Brazilian tycoon Eike Batista has signed a definitive agreement to sell a majority stake in another of his key assets as he advances a plan to shore up his heavily indebted companies. Mining company MMX Mineracao e Metalicos SA, which is controlled by Mr. Batista, said that Abu Dhabi's Mubadala Development Co., already a big investor in Mr. Batista's industrial group, and commodities trader Trafigura Group have agreed to pay US$400 million to buy a majority stake in a port in Itaguai, in the south of Rio de Janeiro state, according to the WSJ. The report notes that it's the latest sale by Mr. Batista, who has seen his personal wealth collapse as a result of the financial and operational troubles faced by his group of companies. One of the richest men in the world just over a year ago, with an estimated fortune of more than US$30 billion, Mr. Batista is now off the billionaires' list altogether, the report notes. The report relates that Trafigura and Mubadala have agreed to buy 65% of MMX Porto Sudeste Ltda, and MMX will retain the remaining 35% stake. The port company will also take on BRL1.3 billion Brazilian (US$598 million) in debts owed by one of MMX's mining subsidiaries, the report says. The report relays that construction of the port, known as Superporto Sudeste, began in July 2010, and it's expected to begin operations in mid-2014, with an initial capacity to handle 50 million tons of iron ore per year. The report notes that the latest sale is evidence that some parts of Mr. Batista's floundering empire still have some value. The group began to unravel in mid-2012, after the flagship oil company, OGX Petroleo e Gas Participacoes SA, began to show signs that it wouldn't be able to live up to promises on oil production, the report discloses. The report relays that OGX has since said that it has halted development of most of its oil fields. The firm is negotiating the restructuring of some US$3.6 billion in bonds, having defaulted on a US$45 million payment at the beginning of October, the report notes. The report relates that OGX's troubles shattered much of the confidence across much of Mr. Batista's interlocking industrial group. Many of the companies are capital-intensive startups that have yet to turn a profit, the report notes. The report adds that Mubadala itself has already invested around $1.5 billion in Mr. Batista's holding company EBX. OGX PETROLEO: Speculations Emerge of Owner to Cede Control of Firm ------------------------------------------------------------------ Peter Millard at Bloomberg News reports that speculation has emerged that Eike Batista, owner of OGX Petroleo & Gas Participacoes SA, will cede control of the company as the former billionaire's mining unit sold assets. Investor website InfoMoney said speculations have emerged that Mr. Batista, who missed a series of production targets and lost about US$30 billion of his fortune in the past year, would leave the company he founded in a possible agreement with creditors, according to Bloomberg News. "There's a lot of noise in the market, and one possibility is Eike leaving the controlling group," Bloomberg News quoted Lucas Brendler, who helps manage about BRL4 billion (US$1.8 billion) at Geracao Futuro Corretora in Porto Alegre, Brazil, as saying. "The creditors would probably like to see him out of the company and go on dealing with the executives. Having Eike out would be the start of finding a way out," he added. Bloomberg News notes that OGX Chief Executive Officer Luiz Carneiro said Sept. 13 that Batista may lose control of OGX as part of a debt restructuring. The oil producer, once the centerpiece in Batista's commodities group, missed a US$45 million Oct. 1 bond payment that puts him on the brink of Latin America's biggest corporate default, Bloomberg News relays. About OGX Petroleo Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes S.A. is an independent exploration and production company with operations in Latin America. * * * As reported in the Troubled Company Reporter-Latin America on July 17, 2013, Moody's Investors Service downgraded OGX Petroleo e Gas Participaaoes S.A.'s Corporate Family Rating to Ca from Caa2 and OGX Austria GmbH's senior unsecured notes ratings to Ca from Caa2. The rating outlook remains negative. OGX PETROLEO: Seeks to Preserve Fields Amid Restructuring --------------------------------------------------------- Luciana Magalhaes at Daily Bankruptcy Review reports that distressed Brazilian oil company OGX Petroleo e Gas Participacoes SA is trying to preserve most of its current oil field portfolio while it rushes to find a negotiated solution for US$3.6 billion in debt. Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes S.A. is an independent exploration and production company with operations in Latin America. * * * As reported in the Troubled Company Reporter-Latin America on July 17, 2013, Moody's Investors Service downgraded OGX Petroleo e Gas Participaaoes S.A.'s Corporate Family Rating to Ca from Caa2 and OGX Austria GmbH's senior unsecured notes ratings to Ca from Caa2. The rating outlook remains negative. ========================== C A Y M A N I S L A N D S ========================== ARAB ISLAMIC: Commences Liquidation Proceedings ----------------------------------------------- On Sept. 12, 2013, the shareholders of Arab Islamic Gateway Fund Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Ghassan Hitti c/o Alan de Saram Telephone: 949 4544 Facsimile: 949 8460 CARD Corporate Services Ltd. Zephyr House, 122 Mary Street P.O. Box 709, George Town Grand Cayman Cayman Islands BLUE RIDGE: Placed Under Voluntary Wind-Up ------------------------------------------ On Sept. 20, 2013, the members of Blue Ridge China Dfss Holdings resolved to voluntarily wind up the company's operations. The company's liquidators are: Christopher Kennedy Matthew Wright of RHSW (Cayman) Limited PO Box 897, Windward 1 Regatta Office Park, West Bay Road Grand Cayman KY1-1103 Cayman Islands BTR ARBITRAGE: Creditors' Proofs of Debt Due Oct. 29 ---------------------------------------------------- The creditors of BTR Global Arbitrage Trading Limited are required to file their proofs of debt by Oct. 29, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 26, 2013. The company's liquidator is: Ogier c/o Jonathan Turnham Telephone: (345) 815 1839 Facsimile: (345) 949 9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands BTR GLOBAL: Creditors' Proofs of Debt Due Oct. 29 ------------------------------------------------- The creditors of BTR Global Prospector Trading Limited are required to file their proofs of debt by Oct. 29, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 26, 2013. The company's liquidator is: Ogier c/o Jonathan Turnham Telephone: (345) 815 1839 Facsimile: (345) 949 9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands BTR OPPORTUNITY: Creditors' Proofs of Debt Due Oct. 29 ------------------------------------------------------ The creditors of BTR Global Opportunity Trading Limited are required to file their proofs of debt by Oct. 29, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 26, 2013. The company's liquidator is: Ogier c/o Jonathan Turnham Telephone: (345) 815 1839 Facsimile: (345) 949 9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands EXPEDITION MASTER: Creditors' Proofs of Debt Due Nov. 7 ------------------------------------------------------- The creditors of Expedition Master Fund Limited are required to file their proofs of debt by Nov. 7, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 24, 2013. The company's liquidator is: DMS Corporate Services Ltd c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands FLATIRON STRATEGIC: Creditors' Proofs of Debt Due Nov. 7 -------------------------------------------------------- The creditors of Flatiron Strategic Yield Ltd are required to file their proofs of debt by Nov. 7, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 25, 2013. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Kim Charaman/Jennifer Chailler Telephone: (345) 943 3100 GLOBAL MANAGEMENT: Creditors' Proofs of Debt Due Nov. 6 ------------------------------------------------------- The creditors of Global Management Group Inc are required to file their proofs of debt by Nov. 6, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 25, 2013. The company's liquidator is: Marcelo Aubone Gurruchaga 830 5th Floor Buenos Aires Argentina Telephone: +5411 4129 8801 IBIS RE: Creditors' Proofs of Debt Due Oct. 28 ---------------------------------------------- The creditors of Ibis Re Ltd. are required to file their proofs of debt by Oct. 28, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 26, 2013. The company's liquidator is: Carl Gosselin Wilmington Trust (Cayman), Ltd. P.O. Box 32322 Grand Cayman KY1-1209 Cayman Islands Telephone: (345) 640 6712 INDOCEMENT (CI): Creditors' Proofs of Debt Due Oct. 28 ------------------------------------------------------ The creditors of Indocement (CI) Ltd are required to file their proofs of debt by Oct. 28, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 26, 2013. The company's liquidators are: Daniel Lavalle Tju Lie Sukanto Wilmington Trust Corporate Services (Cayman) Limited P.O. Box 32322 Grand Cayman KY1-1209 Cayman Islands Attn.: Carl Gosselin, Agent Telephone: (345) 640 6712 PRIQUAM ADVISORY: Creditors' Proofs of Debt Due Oct. 21 ------------------------------------------------------- The creditors of Priquam Advisory Limited are required to file their proofs of debt by Oct. 21, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 25, 2013. The company's liquidator is: Appleby Trust (Cayman) Ltd. Clifton House, 75 Fort Street PO Box 1350, Grand Cayman KY1-1108 Cayman Islands SC INDIA: Creditors' Proofs of Debt Due Oct. 29 ----------------------------------------------- The creditors of SC India Holdings Limited are required to file their proofs of debt by Oct. 29, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 27, 2013. The company's liquidator is: Gene Dacosta Telephone: (345) 945 3901 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands SG S&P: Commences Liquidation Proceedings ----------------------------------------- On Sept. 12, 2013, the shareholders of SG S&P IFCI UAE Price Return Fund Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Ghassan Hitti c/o Alan de Saram Telephone: 949 4544 Facsimile: 949 8460 CARD Corporate Services Ltd. Zephyr House, 122 Mary Street P.O. Box 709, George Town Grand Cayman Cayman Islands ====================== P U E R T O R I C O ====================== EL VOCERO: Attorneys Seek to Sell Business, Defends Sale Maneuver ------------------------------------------------------------------ Katy Stech at the Wall Street Journal reports that Puerto Rico's struggling Spanish-language newspaper El Vocero has a survival strategy to avoid becoming yet another victim of the consolidation wave sweeping the media industry. Attorneys who put the daily newspaper into bankruptcy in September want to sell it but with a controversial restriction: they want the power to throw out bids from investors who already own other newspapers on the island, according to the WSJ. That proposed rule, which needs approval from a bankruptcy judge, would block offers from the influential Ferre family that controls the competing El Nuevo Dia newspaper, preventing them from buying El Vocero and either shutting it down or creating "an illegal monopoly," said El Vocero president Peter Miller in court papers, the report notes. "The inability to continue publishing El Vocero could jeopardize the vigorous exercise of the freedom of the press and the freedom of speech guaranteed by the First Amendment of the Constitution of the United States. . . . Should El Vocero disappear, it would essentially mean that Puerto Rico would be receiving its news from only one daily newspaper, certainly not something that anyone desires," the newspaper's attorneys wrote in court papers, the report relates. The WSJ discloses that El Vocero has already found a roughly US$3 million offer from investors who were brought together by Mr. Miller's second cousin, Raul Betancourt. Under the deal, the report notes, Mr. Betancourt would purchase a minority stake in the newspaper, its attorney said in an email to Bankruptcy Beat. The report relays that newspaper officials have proposed to hold a Nov. 4 auction to see if other bidders can top that initial offer. But the proposed ban on other players on the Puerto Rican media scene has rattled the island's tax authorities, who have been trying to collect millions of dollars from the newspaper, the WSJ discloses. In court papers, attorneys hired by the island's tax department accused newspaper officials of favoring the insider investor group when they should be encouraging higher offers, according to the report. A larger purchase price would give the newspaper more money to pay off its debts, including more than US$30 million in local and federal taxes, the report says. The report notes that Mr. Miller later distanced himself from the investor group. The report relates that Mr. Miller also pointed out that he asked other potential investors to consider purchasing the paper, including former New York Daily News co-owner Mr. Fred Drasner and the investment firm behind Puerto Rico's Channel 5 television station. The report said that both groups was to head to Bankruptcy Judge Mildred Caban's courtroom in Old San Juan on Oct. 14 to argue over whether the newspaper's proposed auction rules are fair. The WSJ discloses that attorneys put El Vocero into bankruptcy on Sept. 20 after more than a decade of struggles. In court papers, newspaper officials blamed universal challenges that face the print media industry: declining advertising revenue and increasing paper and ink costs, the report says. Founded in 1974, El Vocero grew to reach its circulation peak in the early 1990s with about 270,000 daily editions before financial troubles hit. The report recalls that the company's El Mundo newspaper failed in 2000 after only a few years of publishing. By the time that El Vocero's founding editor Gaspar Roca died in 2007, the newspaper was behind on its tax bill and hadn't been paying its paper supplier on time, according to court papers, the report says. In 2009, the newspaper's circulation department laid off 107 union workers, triggering a National Labor Relations Board dispute that could end up costing it more than US$10 million, according to court papers, the report notes. The WSJ adds that the last straw came when the union's pension administrators asked a federal judge to force the newspaper to pay up on delinquent pension contributions that, at one point, had grown to more than US$435,000. ================ S T. L U C I A ================ * ST. LUCIA: Chamber of Commerce Unsurprised by Unemployment Rate ----------------------------------------------------------------- Caribbean 360 reports that the St. Lucia Chamber of Commerce said the increase in the islands' unemployment rate should not come as a surprise as the private sector body had been warning this was inevitable given the country's worsening economic situation. "Some four to five years ago with the onset of the recession the Chamber and its membership did announce its intentions to maintain levels of employment as best as they could and would not rush into a rash of lay-offs, but would try to weather the storm. . . . However one would admit that it has been quite an extended period of economic slow-down and we have seen the natural effects of wear and tear on businesses that have held out for a long period and the situation is not improving," Caribbean 360 quoted Chamber Executive Director as Brian Louisy saying. Mr. Louisy, the report notes, said that despite the efforts of private sectors to avoid lay-offs in the face of a protracted recession, the worsening economic forecast has made streamlining a matter of course for many businesses and that the eventual decision to send workers home has turned out to be the difference in keeping businesses operational. The report discloses that the Chamber official contends that redundancies were a natural consequence of doing business in a drawn out recession. But Mr. Louisy said he remains hopeful that even in the face of an economic crisis some businesses may find opportunities for investment, expansion and new business prospect, the report relays. The report notes that while not explicitly agreeing that the implementation of the Value Added Tax (VAT) last October contributed to the situation, he admits that the negative implications of the tax across the various sectors cannot be denied. "I believe that the introduction of VAT does have a number of effects and has caused a change in behavior among a cross section of the population. . . . We are of the view that the manner in which VAT was implemented may have contributed to the negative implications we see across the country," the report quoted Mr. Louisy as saying. The report notes that the St. Lucia Employers Federation recently called for a reduction in the VAT and Mr. Louisy said the Chamber was open to any discussion on issues of national economic development, including the current unemployment problem. Mr. Louisy said that he hoped that the launch of the National Productivity Council next week would provide an opportunity for stakeholders to discuss the matter, the report adds. =============================== T R I N I D A D & T O B A G O =============================== CARLTON SAVANNAH: First Citizens Places Hotel in Receivership ------------------------------------------------------------- Curtis Rampersad at Trinidad Express reports that State bank First Citizens placed the Carlton Savannah hotel in receivership. The Carlton Savannah has been in "semi-receivership" during the past four years and although it has continued to operate, industry sources said Oct. 9, according to Trinidad Express. The hotel is adjacent to the Queen's Park Savannah in Port of Spain. It has 157 guest rooms and 51 suites. The report notes that First Citizens said in a statement that it was working with all stakeholders to ensure the "best possible outcome for all concerned under the circumstances", the report notes. However, the hotel has struggled to turn a profit over the past few years, leading to it being placed in receivership. Sources close to The Carlton Savannah's operations told the Trinidad Express in an interview that local minority shareholders met with First Citizens and agreed that a receiver should be appointed. The report relates that two partners at audit and consultancy network Deloitte in Port of Spain have been appointed receivers. Sources confirmed Oct. 9 that Carlton Savannah will continue to operate as a going concern while possible sale options are looked at, the report says. A British company that was a primary shareholder pulled out of the hotel several years ago, leaving several local minority shareholders, the report recalls. Private real estate investors were sold suites at the hotel when it was opened, the report relates. Trinidad Express was informed that investors were refunded the money they paid for the suites. Management of the company's operations are now being handled by the receiver and Carlton Savannah transactions received after October 8 are only to be processed at banks if they are authorized by the receiver, Trinidad Express discloses. The Carlton Savannah was fully finished in 2011 after two years of battling cost overruns, the report adds. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: S&P Affirms 'B' Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' foreign and local currency corporate credit ratings on Petroleos de Venezuela S.A. (PDVSA). At the same time, S&P affirmed its 'B' senior unsecured debt rating on the company. The outlook remains negative. The affirmation follows S&P's regular annual review. In addition, S&P revised its stand-alone credit profile (SACP) on PDVSA to 'b' from 'b+'. "The downward revision of PDVSA's SACP reflects the rising business risk for PDVSA in light of heavy government involvement in the energy sector which affects the company's day-to-day operations amid increased country risk to which the company is exposed following Venezuela's downgrade," said Standard & Poor's credit analyst Fabiola Ortiz. S&P believes that PDVSA's commitment to supply 450 million barrels per day (mbpd) to cover the government's debt, coupled with a highly taxed industry, underscores the government's heavy involvement in the sector. As a result, S&P believes that the company's SACP is highly intertwined with the sovereign's credit quality. "The ratings affirmation reflects our criteria on government- related entities (GREs) and our view of an "almost certain" likelihood of government extraordinary support to PDVSA under financial distress scenarios, as well as extraordinary financial burden under sovereign distress scenario. This assessment is based on PDVSA's "critical" role as it contributes about 50% of Venezuela's revenues and 90% of its exports, and plays a key role in meeting the sovereign's political and economic objectives and its "integral" link with the government, given its full and stable ownership of the company and high involvement in the day-to-day operations," S&P said. ================= X X X X X X X X X ================= * Latam Bank Credit Quality Manageable Despite Economic Challenges ------------------------------------------------------------------ Latin American bank loan growth is expected to decelerate in 2013, with nominal loan growth rates around 15 percent through 2014, according to a new Fitch Ratings report. "The main drivers of credit growth are consumption and investments trends. The increases in average disposable income will bolster the positive trend in consumer lending in countries like Panama and Dominican Republic, while increases in foreign direct investment, public and private infrastructure projects, and exports may increase corporate lending in several countries," said Marcela Galicia, Director. Fitch continues to believe that loan portfolio deterioration could be manageable despite the economic challenges foreseen in the region. 'The majority of banking systems have enough capacity to absorb potential losses and some reserve cushion was built due to the higher credit costs in the current phase of the cycle and conservative provisioning' according to Maria Rita Goncalves, Senior Director. Latin America's low banking penetration provides positive medium- term prospects for continuous loan growth. In countries were household debt levels may become a concern such as Brazil, more balance between consumption and investment would foster more consistent growth and asset quality. Brazil's 90 days past due loans ratio will remain the highest in the region, although there have been recent marginal improvements in asset quality figures and provisioning should remain conservative. Faster loan growth of state owned banks may result in greater asset quality challenges compared to private competitors. However, this asset quality divergence may reverse if the potentially slower loan growth made by public banks materializes in 2014. Failures in the homebuilding sector and consumer loan deterioration drove Mexico's delinquency ratios to a peak in June 2013. The effect of the worsening environment and credit costs could be contained in the short term despite a slight decrease in the reserve coverage ratio and the maintenance of Mexican banks conservative charge off practices. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2, 2013 BEARD GROUP, INC. 19th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2013. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. * * * End of Transmission * * *